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The Portfolio Committee on Energy was briefed by PetroSA and the Board on the forensic report on the PetroSA impairment. The Committee was also briefed by PetroSA on its turnaround strategy.

The impairment by the state oil company resulted in a R14.5bn loss in the 2014/15 financial year, pertaining to Project Ikhwezi.

Committee Chairperson, Mr Fikile Majola, said in his opening remarks what is important is the development of a turnaround strategy and if there is a future in the state oil and gas company following the impairment that happened in 2014/ 2015.

The Committee was of the view that the matter of the R14.5bn impairment has been an agenda item for the Committee for three years and wanted the matter to be resolved.

The Committee expressed concern about the Sizwe Ntsaluba Gobodo report as to how the Board handled its findings and recommendations. Members of the Committee were of the view that poor management decisions by executives and the Board should not affect employees in a negative manner.

Some members of the Committee felt that the information being presented before the Committee was insufficient. The Committee said it is not possible for the company to lose R14.5bn and no one is held accountable.

Briefing the Committee, the Board informed the Committee that the Group CEO and Group CFO contracts have been terminated with a settlement offer. The Vice-President of New Ventures Upstream is still within the employ of the company but in a junior position. The Committee said it failed to understand how someone who had been found guilty is still within the organisation.

The Committee raised concern about the number of people at an executive level who are acting. Members said this weakens the governance structures of the organization.

The Committee reiterated that Board members with the requisite skills need to be appointed so as to provide proper oversight to the executive.

The Committee raised a concern about the payment of bonuses to executives as reported in the Sunday newspapers. Members of the Committee said the company continues to make losses and people are being paid performance bonuses in a company that has indicated a further R1.1bn impairment.

Issued by Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Energy, Mr Fikile Majola